₦airaland Forum

1. These big audit firms already audit these institutions yearly. Why would they be re-awarded to find faults in what they had already certified?


2. In our recent inglorious past, these firms were awarded special audits of oil and gas, banking and other sectors, where they already offer routine audit services. Why are we dancing around in circles around them?

3. Someone suggested that these big audit firms are needed to audit, and re-audit their own audit because they have the kind of 'credibility' that 'foreign investors' are looking for. Are we again to be fed to the insatiable wolves called 'foreign investors' for dinner? This government should not repeat the mistakes of Jonathan... and Obasanjo.

4. The best way to executive the necessary audits this time, is to get a team of like 500 local auditors to handle different areas (all ministries and parastatals), and to check themselves. There has to be a way they will compete and bring out very good jobs. If well remunerated, i believe our local firms can deliver. Also, even though the big firms have local partners, they are still conglomerates. Our local firms can have better knowledge of these institutions than they (big 5) have.

5. KPMG, PWC and the rest are institutions on their own. Overfed. With fingers in every pie. How will indigenous firms grow? Apart from Akintola Williams, very few local audit firms are prominent, almost a century after we formed ICAN. How do our own firms become world-beaters if we farm out every major work to 'foreign' firms? How do they someday even aspire to ply their trades in Anglophone African countries for starters? Read my humble new book 'The Race For Capital' to see why we cannot afford to continue feeding the appetites of powerful countries.

6. All these firms had been indicted before, so they aren't smelling of roses as depicted. We know how Arthur Andersen bit the dust with Enron. Coopers and Lybrand, KPMG and the rest, have been involved in large scale audit failures leading to the loss of billions of dollars by investors. Google this topic and see. Size is not everything. Just because they are big doesn't mean we should forget that they can fail, or have failed before. As a matter of fact, some of them stand indicted with the state of these Nigerian institutions they regularly audited.

7. Out of the generosity of my heart (lol), i add one more. It is something i've always been repeating. When a country's finances are tight, it makes every sense to keep the money revolving at home, as much as possible. If FG pays 500-1000 audit firms to audit and benchmark themselves, covering all ministries and parastatals, chances are that the money will remain in Nigeria. Some will employ carpenters to rebuild their office tables, painters to repaint, and some will invest the money in 'pure-water' subsidiaries. More money will remain in Nigerian banks. Pay PWC and the partners abroad will collect a chunk of the profits.

Anyway, this is my contribution. Change we want. Change we shall have.

[size=18pt]Discuss politics on Naija Pips.com Forum[/size]

I totally agree

While I share the same sentiment, we can not leave out political criticism of the credibility of these local firm. We all know how Nigerian are always quick to tag any government move political.

shachris:
1. These big audit firms already audit these institutions yearly. Why would they be re-awarded to find faults in what they had already certified?


2. In our recent inglorious past, these firms were awarded special audits of oil and gas, banking and other sectors, where they already offer routine audit services. Why are we dancing around in circles around them?

3. Someone suggested that these big audit firms are needed to audit, and re-audit their own audit because they have the kind of 'credibility' that 'foreign investors' are looking for. Are we again to be fed to the insatiable wolves called 'foreign investors' for dinner? This government should not repeat the mistakes of Jonathan... and Obasanjo.

4. The best way to executive the necessary audits this time, is to get a team of like 500 local auditors to handle different areas (all ministries and parastatals), and to check themselves. There has to be a way they will compete and bring out very good jobs. If well remunerated, i believe our local firms can deliver. Also, even though the big firms have local partners, they are still conglomerates. Our local firms can have better knowledge of these institutions than they (big 5) have.

5. KPMG, PWC and the rest are institutions on their own. Overfed. With fingers in every pie. How will indigenous firms grow? Apart from Akintola Williams, very few local audit firms are prominent, almost a century after we formed ICAN. How do our own firms become world-beaters if we farm out every major work to 'foreign' firms? How do they someday even aspire to ply their trades in Anglophone African countries for starters? Read my humble new book 'The Race For Capital' to see why we cannot afford to continue feeding the appetites of powerful countries.

6. All these firms had been indicted before, so they aren't smelling of roses as depicted. We know how Arthur Andersen bit the dust with Enron. Coopers and Lybrand, KPMG and the rest, have been involved in large scale audit failures leading to the loss of billions of dollars by investors. Google this topic and see. Size is not everything. Just because they are big doesn't mean we should forget that they can fail, or have failed before. As a matter of fact, some of them stand indicted with the state of these Nigerian institutions they regularly audited.

7. Out of the generosity of my heart (lol), i add one more. It is something i've always been repeating. When a country's finances are tight, it makes every sense to keep the money revolving at home, as much as possible. If FG pays 500-1000 audit firms to audit and benchmark themselves, covering all ministries and parastatals, chances are that the money will remain in Nigeria. Some will employ carpenters to rebuild their office tables, painters to repaint, and some will invest the money in 'pure-water' subsidiaries. More money will remain in Nigerian banks. Pay PWC and the partners abroad will collect a chunk of the profits.

Anyway, this is my contribution. Change we want. Change we shall have.

[size=18pt]Discuss politics on Naija Pips.com Forum[/size]

You must "feed the insatiable wolves" called foreign investors, ask China, their economic revolution or miracle only started when they opened their economy in the 70's.